Tlou considers move into hydrogen
Sydney-listed Tlou Energy, which is looking to develop coalbed methane (CBM) in Botswana, has said it is drawing up a strategy for producing hydrogen.
"The hydrogen economy is rapidly developing and could open multiple additional business opportunities such as solid carbon products, oxygen, ammonia for energy storage, fuel cell electric vehicles (FCEV), agricultural and medical applications," Tlou said in a stock exchange filing on May 28.
Tlou said it was well-positioned to produce hydrogen, given its natural gas reserves, solar power potential and water. Hydrogen would complement its existing plan to produce up to 10 MW of electricity from the Lesedi CBM reserves.
The company is continuing talks with a number of parties on $10mn in project financing for the first phase of the Lesedi gas-to-power project, it said. Two of these parties are undertaking internal approvals and have not said they need to conclude a 10-MW power purchase agreement before committing funds, Tlou said, while others have said they want the purchase deal in place first.
Once the financing is secured, construction of transmission lines and sub-stations can go ahead.